The fintech, which provides point-of-sale payment and credit solutions to small and medium-sized businesses (SMBs), may have inadvertently revealed its intention to roll out business checking and savings accounts, according to Bloomberg. In addition to previewing the potential depository products, programming language in Square’s recent app update suggests it plans to offer customers a 0.5% interest rate on its savings accounts, and will likely not charge for overdrafts and minimum account balances. Square has not confirmed any upcoming release of checking or savings accounts, but has reiterated that it will provide loan and deposit products to businesses through its recently launched small business bank.
An expansion into deposit solutions could help bolster Square as a formidable contender in an increasingly competitive market.
Square could use its merchant base to grab market share from well-entrenched incumbents. Among SMBs, Square is one of the most-used business platforms, supporting at least 2 million merchants worldwide. Its vast network offers an immediate, low-cost access point to upsell its potential deposit products alongside its existing lending solutions. Even JPMorgan CEO Jamie Dimon acknowledges the threat Square presents: He has praised the fintech for beating his larger institution to the punch with its innovative SMB solution suite.